Fb Financial Corporation · NYSE:FBK
Fb Financial — Investor Presentation (September 2019)
30 slides from Fb Financial's investor presentation, Sep 24, 2019
Slide 1: Third Quarter 2019 Investor Presentation
Third Quarter 2019 Investor Presentation September 24, 2019
Slide 2: Important Information for Shareholders and Investors
IMPORTANT INFORMATION FOR SHAREHOLDERS AND INVESTORSThis presentation shall not constitute an offer to sell, the solicitation of an offer to sell, or the solicitation of an offer to buy any securities or the solicitation of any vote or approval, nor shall there be any sale of securities in any juris
Slide 3: Forward-looking statements
Certain statements contained in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, s
Slide 4: Use measures
Use of non-GAAP financial measures This presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. These non‐GAAP financial measures include, without limitati
Slide 5: Strategic drivers
Strategic drivers Great Place to Work Strategic M&A and Capital Optimization Experienced Senior Management Team Elite Financial Performance Scalable Platforms Enabled by Technology Empowered Teams Across Attractive Metro and Community Markets
Slide 6: Over years of history
Over 110 years of history 2003: Acquired The Bank of Murfreesboro in Nashville MSA 2007: Acquired branches from AmSouth Bank in Tennessee community markets 1984 1988 1996 1999 2001 2003 2004 2006 2012 2013 2015 Year: Acquisitions Organic growth Other 1999: Acquired First State Bank of Linden 1906 20
Slide 7: Snapshot of FB Financial today
Snapshot of FB Financial today Financial highlights Company overview Second largest Nashville-headquartered bank and third largest Tennessee-based bankOriginally chartered in 1906, one of the longest continually operated banks in Tennessee Completed the largest bank IPO in Tennessee history in Septe
Slide 8: A leading community bank headquartered in Tennessee
A leading community bank headquartered in Tennessee Top 10 banks in Tennessee¹ Top 10 banks under $30bn assets in Tennessee¹,2 Source: SNL Financial; Note: Deposit data as of June 30, 2019; Pro forma for completed acquisitions since June 30, 2019 and pending acquisitions announced as of September 18
Slide 9: Attractive footprint with balance between community and metropolitan markets
Attractive footprint with balance between stable community markets and high growth metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo 1 Source
Slide 10: Well positioned in attractive metropolitan markets
Well positioned in attractive metropolitan markets 269123Blue dots 193210228Metro markets 130131135Highway 167169172State county outlines 8715487Green dots 148194148Community markets Source files are619754_FirstBank Bancorp.ai and mapinfo Nashville rankings: “The new 'it' City” – The New York Times1
Slide 11: 1H 2019 highlights
1H 2019 Diluted earnings per shareAdjusted diluted earnings per share1 $1.21$1.36 Net income ($million)Adjusted net income1 ($million) $38.3$42.9 Net interest marginImpact of accretion and nonaccrual interest (bps) 4.50%17 Return on average assets Adjusted return on average assets1 1.41%1.58% Return
Slide 12: Consistently delivering balanced profitability and growth
Consistently delivering balanced profitability and growth Drivers of profitability Pro forma return on average assets, adjusted1,2 Net interest margin Core efficiency ratio2 Loans / deposits 1 Pro forma net income and tax-adjusted return on average assets include a pro forma provision for federal in
Slide 13: Net interest margin remains strong
Net interest margin remains strong Historical yield and costs 1 Includes tax-equivalent adjustment.2 Data for nonaccrual interest collections not available prior to 2016.NA = not available NIM (%) 3.75% 3.93% 3.97% 4.10% 4.46% 4.66% 4.50% Impact of accretion and nonaccrual interest (%)2 NA NA 0.01%
Slide 14: Consistent loan growth and balanced portfolio
Consistent loan growth and balanced portfolio Total loan growth1 ($mm) and commercial real estate concentration Loan portfolio breakdown1 4Q 2012 1 Exclude HFS loans; C&I includes owner-occupied CRE; CRE excludes owner-occupied CRE.2 Risk-based capital at FirstBank as defined in Call Report. Commerc
Slide 15: Stable core deposit franchise
Stable core deposit franchise Total deposits ($mm) 1 Includes mortgage servicing-related escrow deposits of $45.4 million, $53.7 million and $53.5 million for the years ended December 31, 2016, 2017 and 2018, respectively, and $68.3 million as of June 30, 2019. There were no mortgage servicing-relat
Slide 16: Mortgage operations overview
$ 103.7 $ 98.1 $36.9 $ 3.5 $ (9.3) $5.5 $ 13.2 $ 20.6 $8.8 $ (3.5) $ (8.7) $(5.7) $116.9 $100.7 $45.5 Total Mortgage adjusted pre-tax contribution1 of $3.3 million for 1H 2019; adjusted for $1.9 million of restructuring expensesMortgage banking income $45.5 million, down 17.2% from 1H 2018Completed
Slide 17: Improving operating leverage remains a key objective
Improving operating leverage remains a key objective Consolidated 1H 2019 core efficiency ratio1 of 65.4% driven by Banking segment core efficiency ratio1 of 56.7%Integration of branch acquisition in line with expectationsImproved mortgage profitability as restructuring continues, offset by reduced
Slide 18: Asset quality continues to improve
Asset quality continues to improve Classified & PCI loans ($mm) Net charge-offs (recoveries) / average loans Nonperforming ratios LLR / loans 1 Includes acquired excess land and facilities for all periods subsequent to the acquisition of the Clayton Banks and GNMA rebooked loans for 2017.
Slide 19: Strong capital position for future growth
Strong capital position for future growth 1 Total regulatory risk based capital, FB Financial Corporation. 2 Non-GAAP financial measure. See “Use of non-GAAP financial measures,” and “Reconciliation of non-GAAP financial measures” in the Appendix hereto. Capital position 12/31/17 12/31/18 6/30/19 Sh
Slide 20: M&A strategy
M&A strategy1 Tuscaloosa Drive time from Nashville 3:30 / Huntsville 2:10Birmingham from Nashville 2:40 / Huntsville 1:30Atlanta 3:30 / Chattanooga 1:40Greenville 5:10 / Chattanooga 3:30 / Knoxville 2:40Asheville 4:20 / Knoxville 1:50Blacksburg 5:50 / Knoxville 3:20Roanoke 6:10 / Knoxville 3:40Bowli
Slide 21: M&A update: announced acquisition of FNB Financial Corp.
M&A update: announced acquisition of FNB Financial Corp. September 17, 2019 FNB Highlights Source: S&P Global Market Intelligence(1) Financials are bank-level(2) Consolidated FNB Financial Corp. equity. Pro Forma Footprint Farmers National Bank of Scottsville Selected Financials(1) Parent company of
Slide 22: Transaction Summary
Transaction Summary FNB Financial Corp. transaction summary Financial Impact Immediate marginal EPS accretion (excluding one time charges and CECL related provision)Neutral to TBVPS at close of the transaction (including CECL impact and one time charges)~20% IRREstimated neutral to regulatory capita
Slide 23: Appendix
Appendix (FB)
Slide 24: Reconciliation measures
Reconciliation of non-GAAP financial measures Pro forma net income, adjusted Pro forma diluted earnings per share, adjusted 1 2016 includes loss on sale of mortgage servicing rights, impairment of mortgage servicing rights, gain on sales or write-downs of other real estate owned and other assets and
Slide 25: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Tax-equivalent core efficiency ratio(1) Efficiency ratio (GAAP) is calculated by dividing non-interest expense by total revenue.
Slide 26: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Segment tax-equivalent core efficiency ratio 1 Includes mortgage segment other noninterest mortgage banking expense, depreciation, loss on sale of mortgage servicing rights and amortization and impairment of mortgage servicing rights.
Slide 27: Tangible book value per common share
Tangible book value per common share and tangible common equity to tangible assets Reconciliation of non-GAAP financial measures (cont’d)
Slide 28: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Return on average tangible common equity Return on average tangible common equity, adjusted
Slide 29: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Pro forma return on average assets and equity, adjusted
Slide 30: Reconciliation measures (cont'd)
Reconciliation of non-GAAP financial measures (cont’d) Total mortgage contribution, adjusted
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